$SBAC · SBA COMMUNICATIONS CORP
SBA Communications reported Q3 2026 results with total revenue of $713.9M, down from $732.3M a year ago, as a 36% plunge in site development revenue to $48.6M offset a 1.4% increase in site leasing. GAAP EPS was $2.19 versus $2.21 in Q3 2025, while AFFO per share fell to $3.19 from $3.30. The company updated full-year 2026 guidance, declared a $1.25/share quarterly dividend, and highlighted $300M in share repurchases alongside the sale of its Chile and Ecuador tower portfolios.
- Q3 total revenue of $713.9M fell 2.5% YoY from $732.3M, driven by a 36% drop in site development revenue.
- GAAP EPS of $2.19 missed the prior-year $2.21; AFFO per share declined to $3.19 from $3.30.
- Domestic site leasing revenue dropped 3.4% to $454.4M, while international site leasing rose 13.3% to $211.0M.
- Company repurchased 1.7M shares for $300M at an average price of $179.68; $0.8B remains on the $1.5B buyback plan.
- Sold Chile and Ecuador towers; Peru sale pending regulatory approval, completing exit from South America outside Brazil.
Extended-hours trading shows SBAC at $181.30, down 1.93% from the regular close of $184.86. The revenue miss and AFFO per share decline are weighing on sentiment despite the aggressive buyback and portfolio streamlining.
SBA is simultaneously shrinking its geographic footprint (exiting South America ex-Brazil) and returning $300M to shareholders via buybacks, signaling a capital-allocation pivot toward higher-confidence markets.
SBA's domestic leasing softness contrasts with American Tower and Crown Castle, which have reported steadier U.S. growth. The South America exit mirrors a broader tower-industry trend of concentrating capital in higher-return, scaled markets.
Domestic site leasing revenue declined 3.4% YoY, and total Tower Cash Flow margin compressed to 79.7% from 80.4%. The $20.1M loss from debt extinguishment and rising interest expense ($126.8M vs. $120.2M) pressure net income. FX headwinds remain material, with constant-currency AFFO per share down 4.5%.